Contrarian viewpoint alert
I am skeptical of the long-term profitability of Netflix.
In the @bgurley @patrick_oshag podcast Gurley talked about how certain markets don't lend themselves to the creation of profitable network effects marketplaces.
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For example, if there's too much customer concentration on either the buyer or seller side, that side can effective collude to prevent marketplace formation. It's my understanding that this is what has happened in the US airlines industry.
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Delta did make $8 bil in EBITDA last year tho, Southwest $4 bil, United $6 bil
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Replying to @typesfaster @Molson_Hart and
The airlines consolidated until they had near monopolies in many markets, and they got a lot better at analytics, pricing, prediction, and got their loads wayyy up. Remember when you used to often take half empty flights?
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In 2011 I flew from Moscow to Beijing on an Aeroflot jet that was so empty that they put caution tape restricting entry to the back half of the plane.
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